Question 1 Financial Acct

3.33 points Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Forten Company, a merchandiser, recently completed its calendar-year 2016 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2016 and 2015 2016 2015 Assets S 50,404 S 68,000 57,125 265,906 238,800 1,900 Accounts receivable 73,525 Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 1,440 54,300 12,000 45,400) S 500,175 S 425,825 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity S 58,875 110,000 5,200 9 8.400 39.000 161,500 48,000 40500 197,325 123,625 S 500,175 S 425,825